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Started By
Message
re: 63 banks on the brink of insolvency according to the FDIC
Posted on 6/4/24 at 10:38 am to RogerTheShrubber
Posted on 6/4/24 at 10:38 am to RogerTheShrubber
quote:
Let it fail.
People need hard lessons.
Honestly, this is what needs to happen. The government needs to stop bailing people out. Just let it all crash. This country needs a gut check. You know that whole saying, "hard times makes strong men, strong men make easy times, easy times make weak men... or however it goes. If we are talking long term, we need hard times.
3
Posted on 6/4/24 at 10:39 am to OweO
You voted for Biden and live off disability payments
Posted on 6/4/24 at 10:41 am to stout
Just a friendly reminder in case it slipped your mind...
Posted on 6/4/24 at 10:47 am to BenDover
WOW someone on this board understands this issue!!!
Posted on 6/4/24 at 10:49 am to stout
Where's the list?
Posted on 6/4/24 at 10:55 am to OweO
quote:
The government needs to stop bailing people out.
You think letting people lose faith in the American banking system would be a good thing?
Posted on 6/4/24 at 11:12 am to LSURussian
quote:
If the economists are correct and we are about to experience falling interest rates over the next few years
The economists are not correct
Posted on 6/4/24 at 11:21 am to BenDover
Yellen messed up when al the long-term debt was not "refinanced" when rates were at an all time low.
Posted on 6/4/24 at 11:22 am to stout
Jaime Dimon finna eat
Posted on 6/4/24 at 11:53 am to stout
That’s not that many considering how much exposure regional banks have in the CRE space.
Posted on 6/4/24 at 12:22 pm to PUB
quote:Please elaborate. Thanks.
Yellen messed up when al the long-term debt was not "refinanced" when rates were at an all time low.
Posted on 6/4/24 at 12:22 pm to Crowknowsbest
Yeah this is a big nothing burger. What other industries are 98 perfect plus of participants considered not at risk of failure?
Posted on 6/4/24 at 12:26 pm to LSURussian
One day - ONE DAY - Stout will get the meltdown and chaos he so richly craves!
Posted on 6/4/24 at 12:42 pm to Big Scrub TX
Dude, I put in the OP that the FDIC said this was within normal scope. If I wanted to be doom and gloom about this wouldn't I leave that part out?
Posted on 6/4/24 at 12:50 pm to olgoi khorkhoi
quote:Maybe, but long term rates have already dropped significantly over the last 6 months.
If the economists are correct and we are about to experience falling interest rates over the next few years
The economists are not correct
The 10-yr Treasury yield last October was 5.02% and today that rate is 4.34%.
Average rates for 30-yr fixed rate mortgages were 7.76% last November and today the average rate is 7.16% according to Bankrate.com.
Posted on 6/4/24 at 12:54 pm to LSURussian
Rates have dropped but remember the Fed indicated at least 3 rate cuts this year. Do you still see that happening?
Posted on 6/4/24 at 12:59 pm to stout
quote:
FDIC reports that 63 banks are on the brink of insolvency
Thats really not that many considering the fact there are over 4000 federally chartered commercial banks in the country.
EDIT: Russian beat me on that point.
quote:
The US banking system faces $517 billion in unrealized losses, primarily due to higher mortgage rates affecting residential mortgage-backed securities.
That does sound like a lot, but probably also isn’t that big of a deal…they’re unrealized losses, meaning they only record a loss if they sell.
This post was edited on 6/4/24 at 1:28 pm
Posted on 6/4/24 at 1:01 pm to Robin Masters
quote:First Bank of Bawcomville, for one.
Well, which ones are they?
Posted on 6/4/24 at 1:09 pm to stout
The unrealized losses in bank's securities portfolios talking point is way overhyped and meaningless. The only portion of a bank's balance sheet that is marked to market is the bond portfolio. If you were to mark the liability side of the balance sheet (checking accounts, savings accounts, CDs, etc.) they would have huge gains a they are typically longer than the average term on bond portfolios -- also, bond portfolios on average only make up 20% of the balance sheet. Bank's actually do this internally and for the regulators and it creates Present Value of Equity calculation which is then stressed in multiple rate scenarios. If that gets out of whack then there could be issues -- but highly unlikely because it is tracked on a monthly or quarterly basis depending on size of the bank
Posted on 6/4/24 at 1:15 pm to OweO
As long as I don’t lose the retirement I’ve worked for. Maybe those weak folks taxpayers have to uphold should go strong or not exist.
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